The company said its net profit for the six months ended in June rose to HK$14.3 million (US$1.8 million) from HK$11.3 million a year earlier, as it benefited from the property boom in Hong Kong and mainland China.

Revenue declined 13% to HK$539.6 million from HK$617.5 million.

In July, the company bought a majority stake in Macau-based Galaxy Casino SA for US$2.37 billion.

The contribution from Galaxy's casino in Macau is expected to provide a boost to K Wah Construction's earnings. "The Macau business is going to lift our earnings in the second half and onward," Vice Chairman Francis Lui said. Mr. Lui cited the expected increase in tourists to Macau from mainland China under the government's individual travel plan.

K Wah Construction plans to change its name to Galaxy Entertainment Group, but will still keep its construction-materials business.

Meanwhile, developer K Wah International Holdings Ltd., which holds 25.92% of K Wah Construction, said its first-half net profit more than quadrupled to HK$631.6 million from HK$156 million.

K Wah International booked a noncash gain of HK$577 million from a share placement of its construction unit during April.

However, the company's revenue fell 20% to HK$719.8 million from HK$900.7 million, because the company didn't launch new projects during the period.